New Ways of Thinking (260-264)

By: Tessa Tramp, Sara Steinauer, Breeanna Burkinshaw, Megan May
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Map of Great Britain

Key Terms:
Utilitarianism: The idea that the goal of society should be "the
greatest happiness for the greatest number" of its people.

Socialism: System in which the people as a whole rather

than private individuals own all the property and operate

businesses.

Mean of Production: Farms, factories, railways, and other

large businesses that produce and distribute goods.

Communism: Class struggles was inevitable and would lead to
creation of classless societies owned by the community as a
whole.
Proletariat: Working class
Social democracy: Marx beliefs adapted by Germany in the
1860's; political ideology in which there is a gradual transition
from capitalism to socialism instead of a sudden violent
overthrow of the system.

Key People:
Thomas Malthus: British economist, who saw the effect of the population explosion.
Jeremy Bentham: a British philosopher and economist who was advocating utilitarianism.
Robert Owen: Utopian man, who grew up as a poor Welsh boy, became a successful mill owner.
Karl Marx: (1840) German philosopher, saw the Utopians as an unrealistic idealism, and created the
"Scientific Socialism".

Laissez-Faire Economics:
After careful study Thomas Malthus published an Essay on the Principle Population in 1798. He
concluded that poverty was unavoidable because the population was increasing faster than food
supply. Malthus was one of the many thinkers who tried to understand the staggering changes taking
place in the early Industrial Ages. As heirs to the Enlightenment, these thinkers looked for natural laws that
governed the world of business and economics. During the Enlightenment, phsiocrats argued that natural
laws should be allowed to operate wihtout interference. In the early 1800s, middle-class business leaders
embraced the Laissez-Faire, or "Hands- Off" approach. Adam Smith was the main propponet of Laissez.
Smith asserted that a free market would come to help everyone, not just the rich. More goods at lower prices,
growing economy would encourage capitalists to reinvest profits in new ventures. Also a Laisserz-Faire
economist,
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Thomas Malthus
Thomas Malthus predidcted that population would outpace the food suply. As

long As long as popoulation kept increasing, the poor would suffer.During the 1800s,
many people accepted Malthus's bleak view as the factory system changed people's life
styles for the worse. Although the population boom continue, the food supply grew even
faster. As the century progressed, living conditions for the Western world slowly
increased, and people began having fewer children. 1900s population growth was no
longer a problem. They had no hope for the working class to get out of poverty, and
famlies had to have more children so they could work and help provide for the family.
Ricardo and Marthus refused to let the government help in assisting the poor. David
Ricardo was a British laissez-faire economist, and he dedicated himself to economic studies, and
didn't have hope for the working class to get out of poverty. Since wages were high families were
having more children. Ricardo and Malthus opposed government help for the poor and they didn't think
the answer to poverty was government relief. They thought it was the " Laws of the free market".

Checkpoint Question:
Explain the response to laissez-fair economics during the nineteenth century?
They had no hope for the working class to get out of poverty. Also familes had more kids, and Ricardo and Mathus refused
government help for the poor.

Utilitarians For Limited Government:

This was a time of when there was a diverse amount of thinkers who modified laissex-faire doctrines. By
the 1800, British philosopher and economist Jeremy Ben tham was advocating utilitarianism which is the
idea that the goal of society should be the greatest happiness for the greatest number". He Thought all
of the actions should be judged by their unit, and supported individual freedom, but need government in
certain situations. His ideas influenced the British philosopher and economist John Stuart Mill. He wanted
the government to help improve the lives of the working class. Since the factory owners we suppose to
be happier they did so by in a way that would harm workers and women. In the later 1800's, his views
were accepted by society.

Checkpoint Question: What did Stuart Mill see as the proper role of government?
He believed the government should step in and improve the hard lives of the working class.

Owen's Utopia:

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Robert Owen
Poverty of the industrial age didn't go well with Robert Owen, he

believed that there was a way he could change society for the better
so he set up the cotton mill. He reduced working hours, build homes
for workers, started a school for children, and opened a complex store
where workers could buy food and clothes. The complex fell into
decline, but visitors can still visit the village to this day.

Socialists Thought Emerges:

This was a time period when capitalism was condemmned
because the people believed that it had created a hole between the
rich and the poor classes. therefore, socialism was created in order to end the spike of poverty that
sat in society. Socialism ideas came from the ideas of Enlightenment faith; basic goodness of human
nature and its concern for social justice. Many communities of socialists began to establish small
communities where work was shared and property in that territory was owned through the people
in the commons. Among these small societies, the theory of Utopians was brought forth, this theory
stated that when there was no difference between the rich and the poor, fighting would disappear, and
there would be an abundance of peace throughout the nation.The response to this theory drifted
among the people, and many people called them the "impractical dreamers". Robert Owen, a utopian
himself, set up a model community in New Lanark, Scottland, to put his own ideas on Utopianism
into practice. Owen grew up as a poor Welsh boy, only to grow up to be a successful mill owner, even
without the use of child labor, in which he campaigned for the society laws to limit child labor and to
encourage laber unions.

Checkpoint Question: What did early socialist believe?
-The early socialists believed that society should be perfect, leaving out all the common problems such as class levels between
rich and poor, and whether they agreed upon the theory of Utopianism. When all the fighting between classes came to a hault,
then all tension would disappear.

Karl Marx Explains Class Struggles:

Karl Marx was a German philosopher, who brought forth the idea of sicentific socialism. Marx and his
partner Friedrich Engels, together wrote the Communists Manifesto in 1848; the point of this pamphlet
was to make society aware of communism. This book described how the economics in society was the
driving force of history itself, meaning that theere was a history of struggles between the classes, over
the control and power of wealth. Marx despised captialism and routed for the proletariats, prediciting
their triumphant victory.

Checkpoint Question: What did Marx predict was the future of the proletariats?
-Marx predicted the triumphant victory of the working classm proletariats, thinking that they would gain control of the means
of production and set up a classless communist society. This would end the struggles for the poor, working class of society.

Marxism in the Future:

Marxism began to gain popularity around the world, Leaders from reform movements adapted the idea
that power should be held by workers rather than business owners.
During the 1860's Germany adapted Marx's beliefs and formed a socia democracy, a political ideology
in which there is a gradual transition instead of a sudent violent overthrow of the system. By the late
1800's russian socialists also embraced marxism and by the 1900's came along several countries had
adapted Marx's ideas to fit the needs of their county. Leaders from Asia, Latain America, and Africa also
turned to Marxism.People began to find flaws in Marxism and his predictions that workers would unite
across borders to wage a class warfare didn't happen; Instead nationalism won out over working class
loyalty and most people felt htat they had stronger ties to their country. By the end o fthe 20th century
almost every econamy had elements of free-market capitalism.

Checkpoint Question: How accurate did Marx's prediction prove to be?
-Marx's predictions ended up not accurate because people began to feel that they had stronger ties to their
rather than other countries and he predicted they would unite across borders.

Other Resources:

//__http://worldhistory.abc-clio.com/Search/Display/325515?terms=new+ideas+in+the+industrial+revolution__//
The Communist Manifest was published in 1848, in order to inform the people of the Industrial Revolution about
the new idea of communism and how it could save their society from labor unions. Power would be contained
and controlled within a community, not singled out to individuals.
//__http://ic.galegroup.com/ic/suic/ReferenceDetailsPage/ReferenceDetailsWindow?displayGroupName=Reference&disableHighlighting=false&prodId=SUIC&action=e&windowstate=normal&catId=&documentId=GALE|K1631000593&mode=view__//
Jeremey Bentham was the son of a prestigious lawyer in Houndsditch, close to London. Bentham was an
Utilitarianist, and attacked the notion that that a social contract could have a legal basis. His theory that right
or good produces pleasure, and evil leads to pain, was widely spread among this time in the Industrial
Revolution period.
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Working Force

Section 4 Quiz Packet:
Karl Marx saw history as a series of classs struggles.
Social Democracy is a political ideology of a gradual
transition.
Proletariat is the working class.
Socialism is a system in which the people, not the
government, own and operate businesses.
Means of Production are farms, factories, railroads,
and other large businesses.
Thomas Malthus is best known for his writings
about population and food supply.
Laissez-faire economists believed a free market
would help everyone.
"The greaest happiness for the greatest number" is
a focus of Utilitarianism.
Robert Owen was a Utopian who supported
Laber unions.

Two goals of communism are to end capitalism;
create a classless society.